1. We have to stocks the Stock1 is TGT Stock2 is PG I have run the regression it is in the picture, but i need the answers for the 10 question about the regression for the two stocks the class is ECON307: FINANCIAL DATA MODELING

\f2 3 Regression Statistics X Variable 1 Residual Plot 4 Multiple R 0.130421 0.3 5 R Square 0.01701 0.2 6 Adjusted R -0.00024 7 Standard E 0.06201 Residuals 8 Observatic 59 10% +5% 0% 10% 15% 9 -0.2 10 ANOVA X Variable 1 11 df SS MS F ignificance F 12 Regression 1 0.003793 0.003793 0.98633 0.324839 13 Residual 57 0.219178 0.003845 14 Total 58 0.22297 15 16 Coefficientsandard Ern t Stat P-value Lower 95%Upper 95%ower 95.091pper 95.0% 17 Intercept 0.001245 0.008256 0.150816 0.880654 -0.01529 0.017779 -0.01529 0.017779 18 X Variable 0.220451 0.221974 0.993141 0.324839 -0.22404 0.664946 -0.22404 0.664946 19 20 + 22 RESIDUAL OUTPUT 23 24 ObservationPredicted Y Residuals 1 0.004933 -0.01473 6 2 -0.00489 -0.05246 3 0.024839 -0.00394 8 4 0.00603 0.036098 5 0.003775 0.089587 6 0.000405 0.030371 7 0.002829 -0.017881. What is the beta of your STOCK1? 2. What is the beta of your STOCK2? 3. What is the alpha of your STOCK 1? 4. Is alpha for STOCK 1 significantly different from zero? 5. What is the alpha of your STOCK 2? 6. Is alpha for STOCK 2 significantly different from zero? 7. How much of STOCK 1's fluctuations are due to Market risk? 8. How much of STOCK 2's fluctuations are due to Market risk? 9. How much of STOCK 2's fluctuations are due to idiosyncratic risk? 10. Which stock should have higher returns? (This is the risk vs. return question - see the last three slides of the lecture notes that shows example of P&G vs. Microsoft)